co-authored by @Alex-Mammoth and @dragos
Hey everyone,
We want to share an important update regarding RADAR liquidity and our market-making strategy on centralized exchanges.
Our previous agreement with GSR has officially concluded. As part of the contract closure, the 200M RADAR tokens held under the loan structure were returned to the DAO on September 16th. We appreciate GSR’s collaboration and support during this period.
Enter LO:TECH, A New Structure and a New Approach
We’re now partnering with LO:TECH, a trading firm that provides transparent, institutional-grade liquidity services across both CEXes and DEXes. You can learn more about them at lo.tech.
What’s Changing
We’ve moved away from the loan and option market-making model. While that setup can suit high-volume tokens, it tends to create misaligned incentives and long-term token pressure for assets like RADAR.
This new structure introduces a retainer-based model focused on alignment, transparency, and sustainable liquidity:
- LO:TECH receives a fixed monthly retainer in stablecoins, not RADAR
- They trade using liquidity owned by the DAO (RADAR + USDT pairs) rather than holding large token allocations
- The team has real-time visibility into performance through LO:TECH’s live dashboard
- Profits generated during positive trading periods are shared back to the DAO treasury, rather than captured entirely by the market maker
- Cross-venue arbitrage ensures better spread control between centralized and decentralized markets
Why It Matters
There is always some level of risk, particularly during sharp market drawdowns when USDT may be used to absorb sell pressure. Still, compared to the previous model, this structure provides greater control, clearer performance monitoring, no risk of token overhang, and a stronger alignment between service delivery and DAO benefit.
It represents a shift from speculative token loaning to professional liquidity management backed by transparency, measurable outcomes, and DAO-owned liquidity.
We’ll continue to report on performance and treasury outcomes as the partnership evolves.
Thank you for supporting this next phase of RADAR’s development.
The DappRadar DAO Team